trying to solve the following:

Sales, Production, Direct Materials Purchases, andDirect Labor Cost Budgets

Thebudgetdirector of Royal Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for February is summarized as follows:

a. Estimated sales of King and Prince chairs for February by sales territory:

Northern Domestic:

King 610 units at $780 per unit

Prince 750 units at $550 per unit

Southern Domestic:

King 340 units at $780 per unit

Prince 440 units at $550 per unit International:

King 360 units at $850 per unit

Prince 290 units at $600 per unit

b. Estimated inventories at February 1:

Direct materials:

Fabric 420 sq. yds.

Wood 580 linear ft.

Filler 250 cu. ft.

Springs 660 units

Finished products:

King 90 units

Prince 25 units

c. Desired inventories at February 28:

Direct materials:

Fabric 390 sq. yds.

Wood 650 linear ft.

Filler 300 cu. ft.

Springs 540 units

Finished products:

King 80 units

Prince 35 units

d. Direct materials used in production:

In manufacture of King:

Fabric 6.0 sq. yds. per unit of product

Wood 38 linear ft. per unit of product

Filler 4.2 cu. ft. per unit of product

Springs 16 units per unit of product

In manufacture of Prince:

Fabric 4.0 sq. yds. per unit of product

Wood 26 linear ft. per unit of product

Filler 3.4 cu. ft. per unit of product

Springs 12 units per unit of product

e. Anticipated purchase price for direct materials:

Fabric $12.00per sq. yd.

Wood 7.00per linear ft.

Filler $3.00per cu. ft.

Springs 4.50per unit

f. Direct labor requirements:

King:

Framing Department 1.2 hrs. at $12 per hr.

Cutting Department 0.5 hr. at $14 per hr.

Upholstery Department 0.8 hr. at $15 per hr.

Prince:

Framing Department 1.0 hr. at $12 per hr.

Cutting Department 0.4 hr. at $14 per hr.

Upholstery Department 0.6 hr. at $15 per hr.

Required:

1.Prepare asales budgetfor February.

Royal Furniture Company Sales Budget For the Month Ending February 28

(Product and Area) (Unit Sales Volume) (Unit Selling Price) Total sales

King:

Northern Domestic

Southern Domestic

International

Total

Prince:

Northern Domestic

Southern Domestic

International

Total

Total revenue from sales

2.Prepare aproduction budgetfor February. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Royal Furniture Company Production Budget For the Month Ending February 28

Units

King Prince

Estimated inventory, February 1

Desired inventory, February 28

Total units to be produced

Expected units to be sold

Total units available

3.Prepare adirect materials purchases budgetfor February. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Royal Furniture Company Direct Materials Purchases Budget For the Month Ending February 28

Direct Materials

Fabric(sq. yds.) Wood(linear ft.) Filler(cu. ft.) Springs(units)Total

Required units for production:

King

Prince

Desired inventory, February 28

Total

Estimated inventory, February 1

Total units to be purchased

Unit price

Total direct materials to be purchased

4.Prepare adirect labor cost budgetfor February.

Royal Furniture Company Direct Labor Cost Budget

For the Month Ending February 28

Framing Department Cutting Department Upholstery Department Total

Hours required for production:

King

Prince

Totalfill

Hourly rate

Total direct labor cost